Tag: Laffer curve
New or higher taxes won’t work, and could be unconstitutional
The trade union federation Cosatu recently called for tax increases, particularly on the wealthy, to arrest South Africa’s economic down spiral. But economist Arthur B Laffer, known for popularising the Laffer curve, shows us that beyond a certain point, tax revenue will decline as tax rates increase.
Government stealth tax to fund ailing Eskom
Officially, for the 2019/20 financial year, government will not be increasing income taxes. The only taxes set to increase are the indirect taxes: fuel levies, excise duties on alcohol and cigarettes, and the new carbon tax coming into effect on 1 June 2019. With these increases government estimates that it will raise an additional R1.2 billion.
Has South Africa reached its limit on tax increases?
Kyle Mandy | Tax Policy Leader | PwC | mail me |
Following the Medium Term Budget Policy Statement (MTBPS) delivered on 25 October 2017...
